Buy Europe to Access Emerging Market Growth

A easing in trade tensions between the US and China is positive for European stocks, which derive a third of their sales from emerging economies

David Brenchley 12 April, 2019 | 3:30PM
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Ferrari, European equities, stock market, emerging market, China GDP growth

Fears over global trade dragged markets down in 2018, but stocks have rallied in the first three monts of 2019 on hopes for an easing of trade tensions between the US and China.

The trade war dragged emerging market stocks, particularly Chinese ones, down lower than most last year, with the MSCI EM Index declining 14.5% in US dollar terms. But it also hit European stocks. The slowdown in global trade combined with country-specific issues to send MSCI Europe down almost 15%. In contrast, the broader MSCI World Index fell by just 8.7%.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
adidas AG280.60 EUR0.00Rating
ASML Holding NV543.90 EUR0.00Rating
Brunner Ord976.07 GBP0.83Rating
Cie Financiere Richemont SA95.66 CHF0.00Rating
European Assets Ord134.75 GBP0.37Rating
Ferrari NV165.50 EUR0.00Rating
Fidelity China Special Ord414.02 GBP-0.71Rating
Kering SA695.10 EUR0.00Rating
Legg Mason IF MC Eurp Uncons A Inc £5.53 GBP0.85Rating
Moncler SpA51.26 EUR0.00Rating
Schneider Electric SE134.96 EUR0.00Rating
TB Wise Multi-Asset Growth B Acc446.08 GBP0.56Rating
TB Wise Multi-Asset Income B Inc124.67 GBP1.22Rating
TR European Growth Ord1,465.07 GBP-0.67Rating

About Author

David Brenchley

David Brenchley  is a Reporter for Morningstar.co.uk

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